Tuesday, November 15, 2016

October 2016 WPI inflation stands at 3.39%

The WPI inflation stands at 3.39% in October 2016, 3.57% in September 2016, 3.85% in August 2016, 3.72% in July 2016, 2.12% in June 2016, 1.24% in May 2016 and 0.79% in April 2016. The decline in WPI inflation in the month of October 2016 is attributed to fall in the prices of rice (4.57%), wheat (6.30%), pulses (21.8%), potato (60.5%), fruits (6.4%), egg, meat and fish (6.2%).

Driven by the fall in the prices of rice, wheat, pulses, potato, fruits, egg, meat and fish, WPI inflation stands at 3.39% in October 2016 as compared to 3.57% (Y-O-Y) in September 2016. The index for this major group rose by 0.1% to 182.9 from 182.8 for the previous month.

Trend in WPI Inflation (Y-O-Y)

Source: PHD Research Bureau, compiled from the office of the economic advisor to the Govt. of India

WPI inflation in select commodities

Commodity

WPI Inflation Y-o-Y % growth

August’16

September’16

October’16

1

All Commodities

3.85

3.57

3.39

2

Primary Articles

7.75

4.76

3.31

3

Food Articles

8.87

5.75

4.34

4

Cereals

9.51

6.84

6.13

5

Vegetables

0.23

-10.91

-9.97

6

Non-food Articles

8.72

4.49

1.13

7

Fuel & Power

1.62

5.58

6.18

8

Petrol

-8.65

1.25

3.57

9

Manufactured Products

2.48

2.48

2.67

10

Sugar

35.36

32.92

29.63

11

Edible oils

6.51

5.87

4.59

12

Cement & Lime

3.61

1.49

2.48

Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India

Build up inflation rate in the financial year so far was 4.34% as compared to a build up rate of 0.45% in the corresponding period of the previous year.

Build up in inflation from March in select food commodities (%)

Source: PHD Research Bureau, compiled from the office of the Economic Advisor, Govt. of India

Manufacturing inflation stands at 2.67% (weight 64.97%)

The WPI inflation for manufactured products stands at 2.67% for the month of October 2016 as against 2.48% for the month of September 2016. The index for this major group rose by 0.2% to 157.4 (provisional) from 157.1 (provisional) for the previous month.

Trend in WPI inflation in manufactured products (in %)

Source: PHD Research Bureau, compiled from the office of the Economic Advisor

Food inflation at 4.34% (Weight 14.34%)

Food inflation for the month of October 2016 stands at 4.34% as against 5.75% in September 2016. The index for 'Food Articles' group declined by 0.3 percent to 278.8 (provisional) from 279.6 (provisional) for the previous month due to lower price of urad (6%), masur and fruits & vegetables (4% each), arhar, bajra, maize and mutton (3% each), jowar (2%) and moong, fish-inland and condiments & spices (1% each). However, the price of gram (18%), ragi (9%), poultry chicken (5%) and fish-marine, coffee and milk (1% each) moved up.

Fuel & power inflation for the month of October 2016 stands at 6.18% as against 5.58% in September 2016.The index for this major group rose by 1.0 percent to 187.3 (provisional) from 185.4 (provisional) for the previous month due to higher price of aviation turbine fuel (4%), petrol, furnace oil and high speed diesel (2% each) and kerosene and LPG (1% each).

Please contact for any query related to this mail to Ms. Surbhi Sharma, Sr. Research Officer at surbhi@phdcci.in with a cc to Dr. S P Sharma, Chief Economist, PHD Chamber of Commerce & Industry.